Factors Influencing The Penetration Rate Of Malaysian Takāful Industry From Takāful Managers’ Perspective
by Assoc. Prof. Dr. Omaima Eltahir Babikir Mohamed and Prof. Datuk Dr.Syed Othman AlHabshi
International Journal of Excellence in Islamic Banking and Finance, (2015), Vol 5, Issue 1
This paper sought to find the factors influencing Takāful market penetration based on the experience of managers of Takāful operators. Methodology: Twenty (20) Takāful managers were randomly selected and interviewed. The method of analysis employed is The Thematic Analysis.
Findings: The interviewees pointed out the factors that deter the public from participating in Takāful could be listed as follows: the lack of public awareness in the advantages of Takāful over insurance products, the limited range of product varieties, the shortage of relevant expertise to explain Takāful products, the need to improve the distribution channels and marketing strategies.
Practical implications: The paper also suggested several ways of improving Takāful market penetration, namely: the need to develop tailor-made products to suit customer needs according to the different segments of society, expanding the range of product varieties, extensive training of staff and agents in order to enhance their products and services, technical and Shariah knowledge as well as to intensify promotion for higher level of awareness.
Originality/ value of a paper: The paper is a rare attempted to investigate the factors influencing Takāful market penetration in Malaysia context.
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